Citigroup, Inc (NYSE: C) Executive Takes $1 Million Pay Cut to Work for Obama Administration

President Obama announced the hiring of Jacob J. “Jack” Lew, an executive for Citigroup, Inc (NYSE: C), as his new top budget officer on Tuesday, but Lew will take a pay-cut of $1 million to take the job.

When announcing the position, President Obama praised Lew for his management of finances during the Clinton years and his recent work as a deputy secretary in the state department, but failed to mention his work at Citigroup, Inc (NYSE: C) in between.

Lew had previously served as COO of Citigroup, Inc (NYSE: C)’s CITI alternative investments, just before joining the Obama administration last year. The company recent a multi-billion dollar bailout just months before Lew took his last position as Deputy Secretary of State for $177,000 per year, far less than the $1.1 million he received in compensation from Citigroup, Inc (NYSE: C) during 2008 and early 2009, according to his 2009 government ethics filing. Lew also noted in his filing that he was eligible for a bonus which he would collect before taking his post at the state department.

The Washington Times inquired about Lew’s Citigroup, Inc (NYSE: C) compensation with the State Department last year, but the government declined to say how much of the compensation came from bonuses. “Like so many, Deputy Secretary Lew returned to government to serve the public. A review of his public financial disclosure report and his federal salary speaks to that commitment,” a spokesman said at the time.

President Obama praised Lew for his work as deputy director of the Office of Management and Budget while naming Lew the new director of the Office of Management and Budget, but didn’t mention his association with Citigroup.

“At a time when so many families are tightening their belts, he’s going to make sure that the government continues to tighten its own,” Mr. Obama said. “He’s going to do this while making government more efficient, more responsive to the people it serves.”